CENTRAL BANK OF SRI LANKA

ANNUAL REPORT

OF THE MONETARY BOARD TO THE

HON. MINISTER OF FINANCE

FOR THE YEAR

2012

ISBN 978-955-575-260-2
ISSN 1391-359X

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Central Bank of Sri Lanka, 30, Janadhipathi Mawatha, Colombo, 00100.

Ajith Nivard Cabraal

The Governor

Central Bank of Sri Lanka

30, Janadhipathi Mawatha
Colombo 01, Sri Lanka.

March 28, 2013

His Excellency Mahinda Rajapaksa
President of Sri Lanka and
Minister of Finance and Planning
Presidential Secretariat
Colombo 01.
Your Excellency,
Annual Report 2012
Section 35 of the Monetary Law Act (Chapter 422) requires the Monetary
Board of the Central Bank of Sri Lanka to submit an Annual Report to
the Minister of Finance on the state of the economy, the condition of
the Central Bank and a review of the policies and measures adopted by
the Monetary Board, within four months after the end of each financial
year.
The Sixty Third Annual Report of the Monetary Board of the Central
Bank, in respect of the year 2012, is submitted herewith in fulfilment of
this obligation.
Yours sincerely,

CENTRAL BANK OF SRI LANKA

THE MONETARY BOARD
(As at 31 December 2012)
AJITH NIVARD CABRAAL
Governor
P. B. JAYASUNDERA
Secretary to the Ministry of Finance and Planning
MRS. M. RAMANATHAN
Appointed Member
NIMAL WELGAMA
Appointed Member
N. A. UMAGILIYA
Appointed Member

PRINCIPAL OFFICERS AS AT 31 December 2012

Deputy Governors
B. D. W. ANANDA SILVA

P. NANDALAL WEERASINGHE

MRS. CHANDRA PREMARATNE

Assistant Governors
P. SAMARASIRI
(Secretary to the Monetary Board)

W. M. KARUNARATNE
MRS. J. P. MAMPITIYA
W. M. HEMACHANDRA
S. LANKATHILAKE
C. J. P. SIRIWARDENA
MRS. R. DHEERASINGHE
A. KAMALASIRI
K. D. RANASINGHE (On Release)
S. S. RATNAYAKE

DEPARTMENTAL HEADS
Bank Supervision Department
MRS. T. M. J. Y. P. FERNANDO
S. K. RANASINGHE

-
-

Director
Additional Director

-
-

Director
Additional Director

Director

J. P. R. KARUNARATNE
MRS. H. P. T. WIJESURIYA
MISS. S. H. GUNAWARDENA

-
-
-

Superintendent
Additional Superintendent
Additional Superintendent

Domestic Operations Department

R. A. A. JAYALATH

D. A. G. K. WIJETUNGA

Director
Additional Director

Centre for Banking Studies

C. P. A. KARUNATILAKE
T. D. H. KARUNARATNE

Communications Department
S. J. A. HANDAGAMA

Currency Department

Economic Research Department

MRS. S. GUNARATNE -
Director
MRS. Y. M. INDRARATNE -
Additional Director
D. KUMARATUNGE -
Additional Director
Employees Provident Fund Department
MRS. K. GUNATILAKE
- Superintendent
MRS. C. M. D. N. K. SENEVIRATNE -
Additional Superintendent
L. D. D. Y. PERERA -
Additional Superintendent
Exchange Control Department
P. H. O. CHANDRAWANSA
R. R. JAYARATNE

-
-

Controller
Additional Controller

-
-

Chief Accountant
Additional Chief Accountant

-
-

Director
Additional Director

-
-

Director
Additional Director

Finance Department
M. I. SUFIYAN
P. V. L. NANDASIRI

Financial Intelligence Unit

D. M. RUPASINGHE
D. K. WIJESURIYA

Financial Stability Studies Department

MRS. K. M. A. N. DAULAGALA
H. P. G. S. RATNASIRI

Governors Secretariat Department

MRS. K. DASSANAYAKE
T. M. Z. MUTALIPH

-
-

Director
Additional Director

-
-

Director
Additional Director

Director
Additional Director

Human Resources Department

A. R. K. WIJESEKERA
W. R. A. DHARMARATNE

Information Technology Department

MRS. R. A. S. M. DAYARATNE
C. B. PATHBERIYA

International Operations Department

H. A. KARUNARATNE
-
Director
A. A. M. THASSIM -
Additional Director
C. N. WIJAYASEKERA -
Additional Director
Management Audit Department
A. M. N. GUNAWARDANA

Director

-
-

Director
Additional Director

-
-

Director
Additional Director

-
-

Director
Additional Director

Director

-
-

Superintendent and Registrar

Additional Superintendent

-
-
-

Director
Additional Director
Additional Director

-
-

Secretary
Additional Secretary

Payments and Settlements Department

MRS. R. B. WEERASINGHE
A. J. L. PEIRIS

Policy Review and Monitoring Department

P. W. D. N. R. RODRIGO
V. BASKARAN

Facilities Management Department

U. H. E. SILVA
H. SRIYARATNE

Provincial Offices Monitoring Department

H. AMARATHUNGA

Public Debt Department

N. W. G. R. D. NANAYAKKARA
MRS. U. L. MUTHUGALA

Regional Development Department

M. J. S. ABEYSINGHE
M. S. K. DHARMAWARDANE
A. M. R. K. ATTANAYAKE

Secretariat Department
D. WASANTHA
B. W. JINASENA

Security Services Department

S. WANIGASEKERA
B. L. J. S. BALASOORIYA

-
-

Director
Additional Director (On Study Leave)

-
-

Director
Additional Director

Statistics Department
MISS. K. SARAVANAMUTTU
T. H. B. SARATHCHANDRA

Supervision of Non-Bank Financial Institutions Department

H. M. EKANAYAKE
H. B. D. KARUNARATNA
MRS. N. H. E. R. SIRIWARDHANA

-
-
-

Director
Additional Director
Additional Director

-
-

Director
Additional Director

Welfare Department
E. A. HETTIARACHCHI
T. W. ARIYARATNE

AUDITOR
H. A. S. SAMARAWEERA
Auditor-General

CONTENTS
PART I
Page
1. ECONOMIC, PRICE AND FINANCIAL SYSTEM STABILITY, OUTLOOK AND POLICIES
1.1 Overview

1.2 Macroeconomic Developments, Stability and Policy Responses in 2012
Real Sector Developments
...
External Sector Developments
...
Fiscal Sector Developments
...
Monetary Sector Developments
...
Financial Sector Developments
...
1.3 Global Economic Environment and Outlook

1.4 Medium Term Macroeconomic Outlook

1
7
7
13
17
19
21
23
26

37

38
38

40

42

44

45

46

46

49

49

50

50

50

53

57

57

57

58

58

59

59

60

61

61

61

61

63

65

66

...

2. NATIONAL OUTPUT AND EXPENDITURE

2.1 Overview

2.2 Sectoral Output, Policies, Institutional Support and Issues

Agriculture


Export Agriculture


Domestic Agriculture


Fishing


Livestock


Forestry


Agricultural Policies and Institutional Support

Industry


Mining and Quarrying


Manufacturing


Processing


Factory Industry


Industry Policies and Institutional Support

Cottage Industry


Electricity, Gas and Water


Construction

Services


Wholesale and Retail Trade


Hotels and Restaurants


Transport and Communication


Banking, Insurance and Real Estate


Government Services


Private Services

2.3 Expenditure

Consumption

Investment

Availability and Utilisation of Resources

Savings

3. ECONOMIC AND SOCIAL INFRASTRUCTURE

3.1 Overview


3.2 Economic Infrastructure Policies, Institutional Framework and Performance
Communication Services


Energy



Electricity



Petroleum



Oil Exploration
...
...
Transportation

67
69
69
73
74
76
78
79

 Page

Road Development

...

79

Road Passenger Transportation

...

...

...

80

Railway Transportation

Civil Aviation





Port Services
...



Water Supply and Irrigation




3.3 Social Infrastructure Policies, Institutional Framework and Performance



Health




Education




Housing and Urban Development




Safety Nets and Poverty Alleviation




Environment





4. PRICES, WAGES, EMPLOYMENT AND PRODUCTIVITY
4.1 Overview
4.2 Prices
Price Movements and Contributory Factors

Colombo Consumers Price Index (CCPI)

Wholesale Prices Index (WPI)

GDP Deflator
4.3 Wages
Public Sector Wages
Formal Private Sector Wages
Informal Private Sector Wages
4.4 Population, Labour Force and Employment
Population
Labour Force
Employment
Unemployment
Foreign Employment
Labour Productivity
Labour Relations
Labour Market Reforms

...

81
83
84
85
87
87
89
91
92
93

97
98
98
98
102
103
103
104
104
105
106
106
107
110
111
112
113
116
117

5.1 Overview


5.2 External Trade Policies and Institutional Support


5.3 Trade in Goods, Trade Balance, Terms of Trade and Direction of Trade
Export Performance


Import Performance


Trade Balance


Terms of Trade


Direction of Trade


5.4 Trade in Services, Income, Current Transfers and Current Account Balance
Trade in Services



Transportation Services



Travel and Tourism



Communication and Computer and Information Services

Inflows and Outflows of Income


Current Transfers


Current Account Balance


5.5 Capital and Financial Flows and Balance of Payments


Foreign Direct Investment


Medium and Long-term Capital Flows to the Government

Investment in Government Securities


Long-term Capital Flows to the Private Sector and State-Owned Enterprises
Short-term Capital to the Private Sector and Public Corporations

Commercial Banks


Balance of Payments


International Reserves

119
122
124
124
126
129
129
130
131
131
131
132
134
135
135
136
136
136
137
137
138
138
138
138
139

5. EXTERNAL SECTOR DEVELOPMENTS AND POLICIES

 Page
5.6

140

Sovereign Ratings

External Debt

Foreign Debt Service Payments

5.7 Exchange Rate Policy and Exchange Rate Movements

Nominal and Real Effective Exchange Rates

Developments in the Domestic Foreign Exchange Markets

Sovereign Ratings, External Debt and Debt Servicing

140
143
144
145
146
147

149
150

154
154

154
157

157

161

163

163

166

167

167

168

169

171
172
174
174
175
177
177
181
182
182
183
185
185
186

187
189
189
189
189
190
195
196
197
197
198
199
202
202
203
203
204

6. FISCAL POLICY AND GOVERNMENT FINANCE

6.1 Overview

6.2 Fiscal Policy Direction and Measures

6.3 Government Budgetary Operations

Revenue and Grants


Revenue


Grants

Expenditure and Net Lending

Financing the Budget Deficit

6.4 Government Debt and Debt Service Payments

Government Debt

Debt Service Payments

6.5 Budgetary Operations in Sub National Governments
...
Policy Direction and Measures of Sub National Governments
Budgetary Operations in Provincial Councils

Consolidated General Government Budgetary Operations

7. MONETARY POLICY, MONEY, CREDIT AND INTEREST RATES

7.1 Overview
7.2 Monetary Policy
7.3 Developments in Money and Credit
Money Market Liquidity
Reserve Money
Narrow Money (M1)
Broad Money (M2b)
Broad Money (M4)
7.4 Interest Rates
Money Market Rates
Deposit and Lending Rates
Yield Rates on Government Securities
Yield Rates on Corporate Debt Securities
7.5 Future Developments, Challenges and Outlook

8. FINANCIAL SECTOR PERFORMANCE AND SYSTEM STABILITY

8.1 Overview
8.2 Performance of Financial Institutions
Banking Sector
Business Expansion
Assets and Liabilities
Risk Management
Resources

Non-Bank Financial Institutions Sector
Business Expansion
Assets and Liabilities
Risk Management
Resources
Primary Dealers in Government Securities
Risk Management
Market Participation
Unit Trusts
Insurance Companies


Page

Superannution Funds
8.3 Performance of Financial Markets
Money Market
Domestic Foreign Exchange Market
Government Securities Market
Corporate Debt Securities Market
Commercial Paper
Corporate Bonds
Equity Market
8.4 Development Finance and Access to Finance
8.5 Financial Infrastructure Payment and Settlement Systems
Credit Information

206
207
207
208
208
209
209
210
210
212
213
217

ACCOUNTS AND OPERATIONS OF THE CENTRAL BANK OF SRI LANKA

1-94

PART II

PART III
MAJOR ADMINISTRATIVE MEASURES ADOPTED BY THE MONETARY BOARD IN 2012

1-92

PART IV
MAJOR LEGISLATIVE ENACTMENTS OF 2012 RELATING TO THE FUNCTIONS AND
OPERATIONS OF THE CENTRAL BANK AND BANKING INSTITUTIONS IN SRI LANKA
STATISTICAL APPENDIX
SPECIAL STATISTICAL APPENDIX

1-32

PART I TABLES
Page
1. ECONOMIC, PRICE AND FINANCIAL SYSTEM STABILITY, OUTLOOK AND POLICIES
1.1

Gross National Product by Industrial Origin at Constant (2002) Prices

1.2

Aggregate Demand and Savings Investment Gap

10

1.3

External Sector Developments

14

1.4

Global Economic Developments and Outlook

24

1.5

Medium-term Macroeconomic Framework

...

27

38

2. NATIONAL OUTPUT AND EXPENDITURE

2.1

Sectoral Composition and Increase in Gross Domestic Product

by Industrial Origin at Constant (2002) Prices

2.2

Agriculture Production Index (2007-2010=100)

40

2.3

Trends in Principal Agricultural Crops

2.4

Paddy Sector Statistics

43

2.5

Fish Production

2.6

Livestock Sector Statistics

45

2.7

Industrial Production Index (IPI)

50

2.8

Aggregate Demand

62

2.9

Composition of Private Consumption Expenditure at Current Market Prices

63

...

64

41
45

2.10 Investment and Employment in Enterprises Registered under Board of

Investment of Sri Lanka (BOI) and Ministry of Industry and Commerce (MIC)

2.11 Total Resources and Their Uses at Current Market Prices

...

65

2.12 Consumption, Investment and Savings at Current Market Prices

...

66

....

68

3. ECONOMIC AND SOCIAL INFRASTRUCTURE

3.1

Government Investment in Infrastructure

3.2

Growth of Telecommunications and Postal Services

...

69

3.3

Power Sector Performance

...

3.4

Petroleum Sector Performance

...

77

3.5

Salient Features of the Transport Sector

...

3.6

Performance of Port Services

...

84

3.7

Water Supply by National Water Supply and Drainage Board

74
82
86

3.8

Salient Features of Health Services

...

88

3.9

Salient Features of General and University Education .

...

90

...

93

...

99

4.2

Retail Prices of Key Imported and Domestically Produced Items

100

4.3

Revisions to Key Items with Administered Prices 2010-2012

...

101

3.10 Samurdhi Welfare Programme - Number of Beneficiary Families

and Value of Grants

4. PRICES, WAGES, EMPLOYMENT AND PRODUCTIVITY

4.1

Changes in Price Indices

4.4

Sectoral Deflators and GDP Deflator

...

103

4.5

Wage Rate Indices

...

104

4.6

Informal Private Sector Daily Wages by Sector and Gender

...

105

4.7

District-wise Population and Density

...

106

4.8

Household Population, Labour Force and Labour Force Participation

107

4.9

Employment by Economic Activity

...

110

 Page
4.10 Status of Employment

4.11 Public Sector Employment

...

110
111

...

4.12 Unemployment Rate (Unemployed as a percentage of Labour Force)

111

4.13 Departures for Foreign Employment

...

4.14 Foreign Employment Departures by Destination

...

113

4.15 Labour Productivity by Major Economic Sector

...

115

4.16 Strikes in Private Sector Industries

...

116

121

112

5. EXTERNAL SECTOR DEVELOPMENTS AND POLICIES

5.1

Balance of Payments Analytical Presentation

5.2

Composition of Exports

125

5.3

Composition of Imports

127

5.4

Volume of Major Imports

128

5.5

Trade Indices

129

5.6

Net Services, Income and Current Transfers

132

5.7

Tourism Performance

133

5.8

Major Projects Financed with Foreign Borrowings during 2012

137

5.9

International Reserves of Sri Lanka

139

5.10 Disbursement Details of the IMF-SBA Facility 2009

140

5.11 Sri Lankas Sovereign Credit Rating and Country Outlook

140

5.12 Outstanding External Debt and Banking Sector External Liabilities

144

5.13 External Debt Service Payments

145

5.14 Exchange Rate Movements

146

6. FISCAL POLICY AND GOVERNMENT FINANCE

6.1

Summary of Government Fiscal Operations

151

6.2

Economic Classification of Revenue

155

6.3

Economic Classification of Expenditure and Lending Minus Repayments

158

6.4

Functional Classification of Expenditure

160

6.5

Sources of Domestic Financing

162

6.6

Outstanding Government Debt (as at end year)

164

6.7

Assessment of External Debt Vulnerability of Sri Lanka - 2012

165

6.8

Government Debt Service Payments

166

6.9

Government Debt Indicators

167

168

173
176
177
179
180
181
183
184
185

6.10 Budget Outturn for Provincial Councils

7. MONETARY POLICY, MONEY, CREDIT AND INTEREST RATES
7.1
7.2
7.3
7.4
7.5
7.6
7.7
7.8
7.9

Recent Monetary Policy Measures 2010-2012

Developments in Monetary Aggregates


Sources of Reserve Money and Broad Money (M2b)


Classification of Loans and Advances granted by Commercial Banks

Maturity Analysis of Outstanding Credit to the Private Sector by Commercial Banks
Sources of Broad Money (M4)


Selected Money Market Rates


Deposit and Lending Rates


Yield Rates on Government Securities

8. FINANCIAL SECTOR PERFORMANCE AND SYSTEM STABILITY

8.1

Total Assets of the Major Financial Institutions

...

188

8.2

Distribution of Banks and Bank Branches

...

...

189

8.3

Composition of Assets and Liabilities of the Banking Sector

...

...

190

 Page
8.4

Composition of Statutory Liquid Assets of the Banking Sector

...

194

8.5

Profit of the Banking Sector

...

195

8.6

Composition of Regulatory Capital of the Banking Sector

...

195

8.7

Distribution of Branches of NBFIs by Province

197

8.8

Composition of Assets and Liabilities of the NBFI Sector

...

198

8.9

Composition of Income and Expences of the NBFI Sector

...

...

199

8.10 Composition of Regulatory Capital of the NBFI Sector

...

199

8.11 Performance of Primary Dealers

...

202

8.12 Performance of the Unit Trust Sector

...

203

8.13 Performance of the Insurance Sector

...

204

8.14 Performance of EPF and ETF

...

...

206

8.15 Money Market Transactions

...

...

207

8.16 Market Yield Rates of Government Security

...

...

209

8.17 Performance of the Share Market

...

...

210

8.18 Transactions through Payment Systems

...

...

214

PART I CHARTS
Page
1. ECONOMIC, PRICE AND FINANCIAL SYSTEM STABILITY, OUTLOOK AND POLICIES
1.1

Annual Real GDP Growth Rate (1978-2012)

...

1.2

Year-on-year Inflation (Based on CCPI, Spliced)

...

1.3

Annual Unemployment Rate (1990-2012)

...

1.4

Savings and Investment (as a Percentage of GDP)

...

10

1.5

Year-on-year Inflation (Based on CCPI: 2006/07=100)

...

11

1.6

Balance of Payments

...

13

1.7

Revenue, Expenditure and Overall Fiscal Deficit (as a percentage of GDP)

...

17

1.8

Government Debt (as a percentage of GDP)

18

1.9

Policy Interest Rate Corridor and Selected Market Interest Rates

1.10 Year-on-year Growth of Money and Credit to Private Sector

...

...

19

...

...

20

2. NATIONAL OUTPUT AND EXPENDITURE

2.1

Annual Growth Rate

...

39

2.2

Rice: Supply and Demand

...

42

2.3

Industrial Production Index

...

51

2.4

Composition of Industrial Production - 2012

...

52

2.5

Investment in Approved and Contracted BOI Projects (Including Projects Expanded)

...

64

Number of Projects

...

64

Value of Investment

...

64

2.6

...

65

The Economy in 2012 (at current prices)

Supply of Goods and Services

65

Demand for Goods and Services

65

3. ECONOMIC AND SOCIAL INFRASTRUCTURE

3.1

Telephone Density

...

69

3.2

Average Tariff and Cost of Electricity

...

75

3.3

International Crude Oil (Brent) Prices (Monthly Average) 2011/2012

...

76

3.4

Volume of Container Handling and Transshipments

...

84

3.5
3.6

Government Expenditure on Health and Education

Number of Samurdhi Beneficiary Families and Expenditure

...

...

87
93

...

98

...

111

4. PRICES, WAGES, EMPLOYMENT AND PRODUCTIVITY

4.1

Colombo Consumers Price Index (2006/07=100)

4.2 Trends in Labour Force and Unemployment 20082012

5. EXTERNAL SECTOR DEVELOPMENTS AND POLICIES
5.1

Balance of Payments

120

5.2

Major Sources of Foreign Exchange Earnings

120

5.3

Exports by Commodities - 2012

124

5.4

Imports by Commodities - 2012

127

5.5

Exports, Imports and the Trade Balance

128

5.6

Terms of Trade and Trade Indices

130

5.7

Exports by Destinations

131

5.8

Imports by Origin

131

5.9

Tourist Arrivals in 2012 by Country

133

5.10 Tourist Arrivals and Earnings From Tourism

134

 Page
5.11 Inflows to the Capital and Financial Account

136

5.12 Quarterly International Reserves (Incuding ACU balances)

139

5.13 External Debt

...

143

5.14 Exchange Rate Movements

...

146

Exchange Rate Movement - Rupees per US $

146

Effective Exchange Rate Indices: 24-currency (2010=100)

146

147

5.15 Quarterly Inter-Bank Forward Transaction Volumes

6. FISCAL POLICY AND GOVERNMENT FINANCE
6.1

Major Fiscal Indicators (as a percentage of GDP)

150

6.2

Composition of Government Revenue 2012

154

6.3

Composition of Government Current Expenditure 2012

157

6.4

Total Expenditure by Function 2012

159

6.5

Deficit Financing (as a percentage of GDP)

162

6.6

Sources of Bank Financing

162

6.7

Outstanding Government Debt

164

6.8

Composition of Outstanding Domestic Debt - 2012

165

6.9

Composition of Outstanding Foreign Debt - 2012

165

6.10 Currency Composition of Total Outstanding Debt - 2012

166

6.11 Government Debt Service Payments (as a percentage of GDP)

167

7. MONETARY POLICY, MONEY, CREDIT AND INTEREST RATES

7.1

Policy Interest Rate Cycles

172

7.2

Overnight Rupee Liquidity in the Domestic Money Market (2011-2012)

175

7.3

Year-on-Year Growth of Monetary Aggregates

176

7.4

Annual Increase in Domestic Credit (2000-2012)

178

7.5

Volume and Growth of Loans and Advances granted to the

Private Sector by Commercial Banks

178

7.6

Year-on-Year Growth of Outstanding Credit to Key Sectors (%)

179

7.7

Year-on-Year Growth of Credit Extended to the Private Sector

181

7.8

Year-on-Year Growth of Savings and Time Deposits

182

7.9

Average Weighted Call Money Rate and Policy Interest Rates

182

7.10 Movement of Selected Market Interest Rates

183

7.11 Average Weighted Lending Rates by Type of Security (%)

184

7.12 Secondary Market Yield Curve for Government Securities

185

...

...

190

8. FINANCIAL SECTOR PERFORMANCE AND SYSTEM STABILITY

8.1

Off Balance Sheet Exposure of the Banking Sector

8.2

Non-Performing Loans of the Banking Sector

...

...

190

8.3

Provisions for NPLs of the Banking Sector

193

8.4

Sector-wise Credit Exposure of the Banking Sector

193

8.5

Liquidity Ratios of the Banking Sector

194

8.6

Cumulative Maturity Gap-% of Cumulative Liabilities of the Banking Sector

194

8.7

Profitability Indicators of the Banking Sector

195

8.8

Capital Adequacy Ratios of the Banking Sector

196

8.9

Product-wise Accommodations of the NBFI Sector

197

8.10 Non-Performing Accommodations and Provisions Coverage of the NBFI Sector

198

8.11 Profitability Indicators of the NBFIs Sector

199

8.12 ASPI, MPI and Market Capitalisation of the CSE

210

8.13 Turnover and Foreign Participation at the CSE

211

PART I - BOXES

Page

1.

Bridging the Savings-Investment Gap to Sustain High Economic Growth in Sri Lanka

2.

Challenges in Increasing the Per Capita Income Beyond USD 4,000

12

3.

The Divi negum National Programme: The National Drive to Create Prosperous Village

with Healthy and Economically Empowered Households

...

34

4.

Developing Technology Business Incubators for a Technopreneurial Culture

55

5.

Mobile Communication Technology towards Economic Growth

...

...

70

6.

Solid Waste Management

...

...

...

...

94

7. Economic Implications of the Age Structure Transition of the Population

...

108

8.

Skills and High Quality Human Capital for Sustainable Growth

...

114

9.

A New Approach for Assessing the International Reserve Adequacy

141

10.

Interconnectedness of Financial Institutions and Systematic Risk

...

191

11.

Consequences of Unauthorised Finance Business

...

200

12.

The Clean note policy

...

...

215

13.

Major Economic Policy Changes and Measures

...

...

219

STATISTICAL APPENDIX

Table

NATIONAL OUTPUT AND EXPENDITURE

Gross National Product by Industrial Origin at Current Prices of Major Economic Activities

Gross National Product by Industrial Origin at Constant (2002) Prices of Major Economic Activities

Gross National Product by Industrial Origin of Major Economic Activities

Provincial Gross Domestic Product by Industrial Origin at Current Prices (2007-2011)

Resources and their Utilisation

Reconciliation of Key Aggregates at Current Market Prices

Gross Domestic Capital Formation at Current Market Prices

Composition of Private Consumption Expenditure at Current Market Prices

Expenditure on Gross National Product at Current Market Prices

Gross Domestic Expenditure and Availability of Resources

10

Investment and Savings at Current Market Prices

11

Real National Income

12

Trends in Principal Agricultural Crops

13

Production of Tea, Rubber, Coconut and Other Export Agriculture Crops

14

Annual Rainfall and Rainy Days

15

District-wise Performance of the Paddy Sector

16

Paddy Production

17

Performance of Other Field Crops

18

Statistics of the Sugar Sector

19

Statistics on the Forestry Sector

20

Value Added in Industry (2002 Constant Prices)

21

Value Added in Industry (Current Prices)

22

Investment Approvals in Industry by the Board of Investment of Sri Lanka

23

Realised Investments in the Board of Investment (BOI) Enterprises

24

Capacity Utilisation in Industry

25

Employment in Selected State Owned Enterprises

26

Table

Performance of Selected State Owned Enterprises

27

Regional Distribution of Industrial Enterprises

28

Industrial Production Index (IPI) of Major Divisions

29

Industiral Production Index

30

ECONOMIC AND SOCIAL INFRASTRUCTURE

Salient Features of Government Health Services

31

Salient Features of General and University Education

32

Telecommunications and Postal Services

33

Energy Sector Performance

34

Salient Features of the Transport Sector

35

Performance of the Port Services

36

Land Cultivated under the Mahaweli Development Programme

37

PRICES, WAGES, EMPLOYMENT AND PRODUCTIVITY

Movement of the Colombo Consumers Price Index (CCPI) (2002=100)

38

Movement of the Colombo Consumers Price Index (CCPI) (2006/07=100)

39

Colombo Consumers Price Index (CCPI) (2002=100)

40

Colombo Consumers Price Index (CCPI) (2006/07=100)

41

Wholesale Price Index (WPI)

42

Average Retail Prices of Selected Food Items by Province 2011 - 2012

43

Wholesale Prices of Selected Commodities

44

Wage Rate Indices

45

Average Daily Wages in the Informal Sector

46

Average Daily Wages of Informal Sector by Province 2011-2012

47

Demography

48

Population by District

49

Labour Force Participation Rate

50

Status of Employment

51

Employment by Economic Activity

52

Labour Force Trends

53

Public Sector Employment

54

Foreign Employment

55

Employees Provident Fund

56

Employees Trust Fund

57

Strikes in Private Sector Industries

58

EXTERNAL SECTOR DEVELOPMENTS AND POLICIES

Central Bank Trade Indices Value

59

Central Bank Trade Indices Volume

60

Central Bank Trade Indices Unit Value

61

Foreign Trade

62

Exports

63

Tea Exports, Sales and Prices

64

Volume and Value of Tea Exports

65

Country Classification of Tea Exports

66

Rubber Exports and Prices

67

Major Rubber Export Destinations

68

Country Classification of Garment Exports

69

Major Coconut Products Exports and Prices

70

 Table

Volume and Value of Exports of Other Agricultural Products

71

Selected Industrial and Mineral Exports

72

Imports by Major Categories

73

Imports

74

Imports and Exports of Major Commodities

75

Direction of Trade - Exports

76

Direction of Trade - Imports

...

...

...

...

77

Tourism Performance

78

Some Indicators of the Regional Distribution of the Tourist Trade

79

Balance of Payments

80

Balance of Payments - Standard Presentation under BPM 5

Services, Income and Transfers

...

80A
81

Workers Remittances

82

External Resources and their Uses

83

Financing of the External Resources Gap

84

External Debt Outstanding and Banking Sector External Liabilities ...

85

End of Period Exchange Rates

86

Average Exchange Rates of Major Currencies and Monthly Indices of Nominal Effective

87

Exchange Rate (NEER) and Real Effective Exchange Rate (REER)

...

Interbank Forward Market Transactions

88

Absorption and Supply of Foreign Exchange by the Central Bank

89

FISCAL POLICY AND GOVERNMENT FINANCE

Summary of Government Fiscal Operations

90

Government Revenue

91

Payments of the Government of Sri Lanka

92

Voted Expenditure of the Government of Sri Lanka 2012

93

Voted Expenditure of the Government of Sri Lanka 2013

94

Current Transfers to Public Corporations and Institutions

95

Capital Transfers to Public Corporations and Institutions

96

Acquisition of Financial Assets (Loan Outlays)

97

Financing of the Government Net Cash Deficit

98

Economic Classification of Government Revenue

99

Economic Classification of Government Expenditure and Lending Minus Repayments

100

Economic Classification of Government Fiscal Operations

101

Composition of Outstanding Government Debt

102

Ownership of Government Debt (as at end of the year)

103

Ownership of Treasury Bills

104

Ownership of Treasury Bonds

105

Ownership of Rupee Loans

106

Ownership of Outstanding Foreign Debt

107

Foreign Loans 2012

...

108

Net Receipts of Foreign Assistance

109

Outstanding Central Government Debt (as at end of the year)

110

Budget Outturn for Provincial Councils

111

Consolidated Budget

112

MONETARY POLICY, MONEY, CREDIT AND INTEREST RATES

Currency Issued by the Central Bank (by Denomination)

113

Monetary Aggregates M1 and M2

114

Monetary Survey M2

115

Consolidated Monetary Survey M2b

116

Financial Survey M4

117

Monetary Aggregates - Summary

118

Reserve Position of Commercial Banks

119

Money Rates : The Central Bank and Commercial Banks

120

Money Rates: Savings and Long Term Credit Institutions

121

Yield Rates on Government Securities

122

Commercial Banks Loans and Advances by Type of Security (End of Period)

123

Commercial Banks Loans and Advances to the Private Sector

124

FINANCIAL SECTOR PERFORMANCE AND SYSTEM STABILITY

Assets and Liabilities of the Central Bank

125

Assets and Liabilities of Domestic Banking Units (DBUs) of Commercial Banks

126

Assets and Liabilities of Offshore Banking Units (OBUs) of Commercial Banks

127

Assets and Liabilities of Non-Bank Financial Institutions

128

Savings and Fixed Deposits of Deposit-taking Institutions

129

Insurance Activities

130

Share Market Performance

131

Debentures Listed on the CSE in 2012

132

Total Cultivation Loans Granted by the Lending Banks (position as at 31 December 2012)

133

New Comprehensive Rural Credit Scheme Loans Granted for Subsidiary Food crops by

134

(Position as at 31 December 2012)

135

...

136

137

Deposits and Advances of District Co-operative Rural Banks (2002 2012) and

the Leading Bank (Poition as at 31 December 2012)

Operations of the Crop Insurance Programme Paddy Sector

District-wise Classification for 2012

Deposits and Advances of District Co-operative Rural Banks Unions (2004 2012) and

District-wise Classification for 2012

SPECIAL STATISTICAL APPENDIX

Table

1. Real Sector:

Population and Labour Force

...

National Output and Prices

...

Balance of Payments

...

International Reserves, External Debt and Exchange Rates

...

...

Government Fiscal Operations

...

...

Monetary Survey

...

Interest Rates

...

2. External Sector:

3. Fiscal Sector:

Government Debt

4. Financial Sector:

5. Socio-economic Conditions: 1953 2009/10

Key Socio-economic Indicators in Sri Lanka

...

...

...

...

Key Socio-economic Indicators by Province

...

...

...

10

Key Socio-economic Indicators by Sector

...

...

...

...

11